Silver Price News: Silver Hits One-Week High As Rate-Cuts Start

Silver prices rebounded through the $31.00 an ounce level on Thursday, taking a lead from strengthening gold prices, as the markets reacted to weaker than expected US data and interest rate cuts by other major central banks.

The price of silver powered up as high as $31.37 an ounce on Thursday, a one-week high. That compared with just over $30.00 an ounce in late trades on Wednesday.

A larger-than-expected rise in the number of US initial jobless claims in the week to June 1 pointed to softness in the US economy, which strengthens the case for interest rate cuts by the US Fed. This is all the more in focus this week in the wake of the Bank of Canada’s decision to cut rates by 25 basis points on Wednesday, followed by an equal-sized cut by the ECB on Thursday – both of which were expected by the markets.

Silver’s move higher on Wednesday and Thursday may have gone some way to helping negate the spectre of May’s ‘double-top’ price formation, which had raised the prospect of short-term losses for the grey metal from a technical perspective.

However, it remains to be seen whether silver prices can continue to push higher to test or exceed the recent highs of over $32.00 an ounce seen in the second half of May.

Looking ahead, silver market players will be watching out for Friday’s US non-farm payrolls figures for the latest monthly update on the US economy, as well as the unemployment figures for May.